This is a Phase II, multicenter, open label, dose escalation study, evaluating the safety and efficacy of CY-1899 for the treatment of chronic hepatitis B. CY-1899 is a T-cell mediated vaccine designed to eliminate hepatitis B infection through induction of an HBV-specific, cell mediated immune response. The doses of CY-1899 range from 50 ug - 15 mg. Each subject will receive 4 inoculations subcutaneously at four week intervals. The study period is for 30 weeks, plus a one month screening period. The potential efficacy of CY-1899 is haplotype restricted to individuals with HLA type A2. Approximately 40% of the population are of this haplotype.